Question 1

What business structure should I choose?

Accepted Answer

Common structures in Australia include sole trader, partnership, company and trust, and each has different consequences for liability, tax and control. A company, for example, is a separate legal entity that can limit personal liability, while a trust can offer flexibility in distributing income. The right choice depends on your circumstances, your risk profile and your plans for growth, so we work alongside your accountant to set up a structure that suits your business.

Question 2

Why do I need a shareholder agreement?

Accepted Answer

A shareholder agreement sets out the rights and obligations of the owners of a company, covering matters such as decision making, dividends, transfer of shares, dispute resolution and what happens if a shareholder wants to exit or dies. Without one you are left with only the default rules in the company constitution and the Corporations Act, which may not reflect what the owners actually intended. A clear agreement helps prevent disputes and protects the business and its shareholders.

Question 3

What should a commercial contract include?

Accepted Answer

A well drafted commercial contract clearly records the scope of work or supply, price and payment terms, timeframes, obligations of each party, warranties, liability and how the agreement can be ended or disputes resolved. Clear terms reduce the risk of misunderstanding and give you a stronger position if something goes wrong. We prepare and review contracts so that your interests are protected and the terms are enforceable.

Question 4

What is involved in buying or selling a business?

Accepted Answer

A business sale or purchase usually involves due diligence, a sale of business or share sale agreement, and the transfer of assets such as equipment, stock, leases, intellectual property and staff entitlements. Key issues include whether you are buying the business assets or the shares in the company, restraint of trade clauses, and apportioning liabilities. We guide you through the contract, the searches and settlement so the transaction completes on the terms agreed.